Representatives of the organization offered their cooperation to further strengthen the Dominican economy to face geopolitical and commodity risks with greater resilience and proactivity
SANTO DOMINGO.– The governor of the Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, received the delegation from the Article IV mission of the International Monetary Fund (IMF), headed by Michael Perks, with the objective of making an analytical presentation of the evolution of the Dominican economy and its prospects.
During the meeting, the Dominican executive highlighted that “despite the complex international environment, the Dominican economy has maintained a better-than-expected performance, with an expansion of 5.6% in September, accumulating 4.6% in the January-September 2026 period.” He noted that “looking ahead, the boost from investment and the resilience of the external sector are expected to contribute to growth of around 4.5% by the end of 2026, one of the highest in the region.”
Regarding September's growth, the governor specified that "among the sectors that contributed to the expansion of the economy, construction (18%), mining and quarrying (17.9%), and financial services (6.9%) stand out, among others." Valdez Albizu told IMF officials that "the dynamism of foreign exchange-generating activities, from which some US$50.7 billion is expected by the end of this year, has contributed to the relative stability of the exchange rate, with a cumulative appreciation of the peso of around 4.0% to date."
A favorable end to the year is projected
Valdez Albizu also informed the mission that “by the end of 2026, the external sector is expected to maintain strong performance, with a projected current account deficit of around 1.0% of gross domestic product (GDP), which would be financed almost four times over by foreign direct investment of approximately US$5,349.0 million.” He added that remittances of around US$12,600.0 million and tourism revenues of around US$12,200.0 million are also expected.
The governor indicated regarding inflation that “due to higher international prices for oil and its derivatives, it has temporarily risen above the target range. However, after reaching 5.67% in June, inflation has moderated to 5.14% year-on-year in October 2026. It is important to note that core inflation has remained within the target range and has decreased from 4.96% in June to 4.54% in October.”
Héctor Valdez Albizu, Governor of the Central Bank of the Dominican Republic. (External source).
He also stated that, based on forecasting models, “year-on-year inflation would return to the target range of 4% ± 1% during the fourth quarter of the year, in a context of inflation expectations anchored to the target.
The financial system remains robust, capitalized, and highly profitable
In other news, Valdez Albizu stated that “credit to the private sector in local currency showed year-on-year growth of around 7.6% at the end of the month.” He also highlighted that “the financial system remains robust, well-capitalized, and highly profitable, with the solvency ratio at 18.97% in June, above the regulatory minimum of 10%, return on equity (ROE) at 23.11%, and return on assets (ROA) at 2.90%.”.
IMF applauds the performance of the Dominican economy
For his part, the head of the IMF mission, Michael Perks, noted in his speech that “the performance of the Dominican economy is admirable” and welcomed the recent improvement in the sovereign credit rating by Fitch Ratings, raising the Dominican Republic from BB- to BB with a stable outlook, in recognition of the strength of its macroeconomic fundamentals, the inflation targeting framework, the climate of stability and its capacity to respond to international challenges during the last 20 years.
He congratulated the country on its greater exchange rate flexibility, which has helped to absorb external shocks, and offered his cooperation to further strengthen the Dominican economy to face geopolitical and commodity risks with greater resilience and proactivity.
Michael Perks, head of the IMF mission. (External source).
Perks also positively assessed the recent 25 basis point increase in the monetary policy rate by the Central Bank of the Dominican Republic (BCRD) as a precautionary measure, due to inflationary threats and the possible effects of a second round of voting.
He concluded his remarks by reaffirming the IMF's full willingness to continue collaborating with the country on advising and implementing economic and financial policies.
The IMF mission was completed with Mr. Nathaniel Arnold, senior economist; Mr. Rasool Zandvakil, senior economist; Mr. Ilya Stepanov, economist; and Mr. Gerardo Peraza, IMF resident representative in Central America.
The governor was accompanied by the manager, Ervin Novas Bello; the deputy general manager, Frank Montaño; and the deputy manager of Monetary, Exchange and Financial Policies, Joel Tejeda Comprés.
The Dominican representative to the IMF, Frank Fuentes; the Deputy Manager of Operations, Liselotte Reyes; the Deputy Manager of Monetary Programming, Joel González; the Deputy Manager of National Accounts and Economic Statistics, Ramón González; the Deputy Manager of Regulation and Financial Stability, Máximo Rodríguez; the Deputy Manager of the International Department, Brenda Villanueva; the Director of the Department of National Accounts and Economic Statistics, Elina Rosario; the Director of the Department of Regulation and Financial Stability, Carlos Delgado; and the Director of Treasury, José Perdomo.
